ATLAS Expands Stake in UK Water Sector
ATLAS Infrastructure has increased its stake in United Utilities through an £800 million equity placement. This move reinforces its commitment to the UK's water sector, a critical area facing challenges due to population growth and climate change.
ATLAS participated as an exclusive cornerstone investor, expanding its existing investment and establishing a significant minority shareholding in United Utilities. This aligns with ATLAS's strategy to support the utility's growth and investment plans, which are crucial for developing infrastructure needed for housing and industrial growth.
Following the equity placement, ATLAS's actively managed accounts now hold approximately 6.6% voting and economic interest in United Utilities. The company has been an investor in United Utilities since 2019, demonstrating a long-term commitment to the sector.
Supporting Infrastructure Development
ATLAS recognises the new direction of the UK water sector and supports United Utilities' efforts in developing critical infrastructure in North West England. These projects include initiatives related to AI data centres and sustainable energy, reflecting the sector’s adaptation to modern demands.
Rod Chisholm, Partner at ATLAS Infrastructure, stated, "The Water sector globally is facing unprecedented challenges caused by population growth and climate change at the same time as needing to continuously improve environmental performance. We are pleased to have been able to deliver the funding to allow United Utilities to accelerate their investment programme to meet these challenges and deliver the outcomes expected by customers, regulators and Government stakeholders."
United Utilities plans to use the raised equity to accelerate its investment program, providing financial flexibility and balance sheet capacity through to the end of AMP8 in 2030. This funding will enable the company to meet the growing demands and support important national initiatives.
The strong support for the transaction from other long-term shareholders indicates broad approval for United Utilities’ investment and growth strategy. This backing is crucial as the company focuses on delivering essential services and infrastructure improvements.
ATLAS Infrastructure values the opportunity to deepen its relationship with United Utilities through its cornerstone role in the recent equity placement. The water sector must continuously adapt to environmental challenges while ensuring sustainable growth, and this partnership aims to address these issues effectively.
